Does your business rely on transportation? It could be visits to customers, driving to work from different sites, or even a business that relies solely on transport like delivery driving. Whether it’s a single car or a fleet of vehicles, having the right business car insurance is essential. It is a legal requirement in the UK if you are using a vehicle for work-related purposes.
Below are the different coverage options available for company vehicles, ensuring that you have the necessary protection to keep your business on the road.
Commercial Motor Insurance vs Business Motor Insurance
Specific motor insurance is legally required for anybody using a vehicle for work purposes. If you’re involved in an accident whilst using a vehicle for work and don’t have commercial or business motor insurance you won’t be able to claim and you may be committing an offence.
Business Car Insurance
Business car insurance covers your car for use while working. It’s a requirement for any journeys that are made for work purposes (apart from your daily commute to and from home which is covered by a standard insurance policy)
There are three types of business car insurance:
Class 1 – Covers your car when you use it to drive between different work locations or to visit clients
Class 2 – Allows you to add a named driver so a co-worker can be insured to drive the same car.
Class 3 – Covers long-distance driving for business purposes. However, this doesn’t include delivering merchandise that would require commercial motor insurance.
Commercial motor insurance
Commercial motor insurance policies cover a wide range of scenarios and risk levels which makes it more comprehensive than standard business motor insurance, and more expensive. It is designed specifically for businesses and covers a wide range of vehicles, including cars, vans, lorries, and motorcycles. This insurance provides financial protection against various risks, such as accidents, theft, and damage caused to third parties.
There are various types of commercial motor insurance available and you should choose the one that best meets your needs, including:
Fleet Insurance. If your business operates a fleet of vehicles, insuring each one individually can be time-consuming and expensive. Fleet insurance allows you to insure multiple vehicles under a single policy, streamlining administration and often providing cost savings.
Haulage Insurance. For businesses involved in haulage or transportation of goods, haulage insurance provides comprehensive coverage tailored to the risks associated with this industry. It covers the vehicles, the goods being transported, and liability for any damage caused during transportation.
As with all motor insurance policies, there are three types of cover to choose from: third-party only, third-party fire and theft, or comprehensive.
A commercial vehicle insurance policy typically covers you for
- Driving to and from work
- Travel between different work locations
- Driving employees or colleagues around
- Using your vehicle for work
- Using your car for anything else work-related
How do I find the right commercial vehicle insurance policy?
It’s important to choose a policy based on your specific needs instead of focusing on price, cheap cover can often mean no cover if it’s not suited to your circumstances. We recommend speaking with an insurance broker like The Bateman Group with access to the whole of the market. We can find suitable policies from reputable providers and help you find the right cover.
Get in touch by calling our friendly team on 01926 495 113 or use our contact form to get in touch!